The leu closed at 4.6275/4.63 to the euro, from 4.637/4.64 per euro Monday.
It had opened flat on the day, but started to lose ground shortly after, hitting an all-time low of 4.65 per euro in interbank trading.
In the afternoon, however, the leu recovered slightly and market participants said the central bank has stepped in to prop the national currency. Non-residents also took profits following the leu’s steep depreciation recently.
The leu’s exchange rates dropped to new record lows of 4.6397 per euro and of 3.8434 to the US dollar for the third straight day Tuesday, as investors turned away from the currency ahead of a key referendum on whether to impeach the country’s president.
The national currency lost 4.2% versus the euro over the past three weeks, amid political tensions after the ruling socialist-liberal coalition won a parliament vote to depose President Traian Basescu. The latter will face a referendum on July 29 on whether he will remain in office.
Since January, the leu weakened by 7.4% against the euro and by almost 15% versus the US dollar.
Prime Minister Victor Ponta said the leu should recover once the referendum results are published next week and the International Monetary Fund completes its scheduled review mission under a EUR3.6 billion loan agreement.
“I am absolutely convinced that next week things will come back to normal,” Ponta said on the national television Monday.
In the money market Tuesday, overnight rates rose to 4.8%-5.3% a year, from 0.9%-1.4% a year in the previous session.